Exhibit 10.4


 


Execution


 


THIS NOTE HAS NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED
OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN
APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS.


 


PROMISSORY NOTE


 


	$25,000	San Antonio, Texas	October 12, 2018


 


FOR VALUE RECEIVED,
DIGERATI TECHNOLOGIES, INC., a Nevada corporation, whose address is 1600 NE Loop 410, Suite 126, San Antonio, Texas 78209 (the
“Debtor”), promises to pay to the order of Danny W. Mills, whose address is 122 Foxhall Cove, San Antonio,
Texas 78213, (the “Payee”), the sum of TWENTY FIVE THOUSAND DOLLARS ($25,000) in lawful money
of the United States of America which shall be legal tender for the payment of debts from time to time, together with interest
on the outstanding principal amount hereof at the rate of eight percent (8%) interest per annum, computed on the basis of a 360-day
year and 30-day months.


 


This Note shall be
payable in monthly payments of interest only and a single payment of the outstanding principal amount plus any accrued interest,
without demand, on November 12, 2018 (the “Maturity Date”). If the Maturity Date shall be a Saturday,
Sunday, or day on which Banks in San Antonio, Texas, or the place of payment are authorized or required to be closed, such payment
shall be made on the next following day that is not a Saturday, Sunday or day on which banks in San Antonio, Texas, or the place
of payment are authorized or required to be closed and interest thereon shall continue to accrue thereon until such date. Debtor
agrees that it will use its best efforts to pay this Note prior to the maturity date, and there is no penalty for satisfying the
obligations under this Note prior to the Maturity Date.


 


Time is of the essence
of this Note, and the Debtor expressly agrees that in the event of default in the payment of any principal or interest when due,
the Payee may declare the entirety of this Note immediately due and payable. Upon the occurrence of any default hereunder, the
Payee shall also have the right to exercise any and all of the rights, remedies and recourses now or hereafter existing in equity,
law, by virtue of statute or otherwise.


 


In the event that any
payment is not made when due, either of principal or interest, and whether upon maturity or as a result of acceleration, interest
shall thereafter accrue at the rate per annum equal to the lesser of (a) the maximum non-usurious rate of interest permitted by
the laws of the State of Texas or the United States of America, whichever shall permit the higher rate or (b) twenty percent (20%)
per annum, from such date until the entire balance of principal and accrued interest on this Note has been paid.


 


Debtor has the privilege
of making prepayments on this Note from time to time in any amount without penalty provided that any such prepayment shall be applied
to unpaid interest on this Note and the balance, if any, to the principal amount payable under this Note.


 






     

     


    

 


No failure to exercise
and no delay on the part of Payee in exercising any power or right in connection herewith shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such
a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. No course of dealing
between Debtor and Payee shall operate as a waiver of any right of Payee. No modification or waiver of any provision of this Note
or any consent to any departure therefrom shall in any event be effective unless the same shall be in writing and signed by the
person against whom enforcement thereof is to be sought, and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given.


 


In the event of default
or if payment of this Note is not made when due or declared due, and the same is placed in the hands of an attorney for collection,
or suit is brought on same, or the same is collected through any judicial proceeding whatsoever, or if any action be had hereon,
then Debtor agrees and promises to pay an additional amount as reasonable, calculated and foreseeable attorneys’ and collection
fees incurred by Payee in connection with enforcing its rights herein contemplated.


 


To the extent permitted
by applicable law, Debtor hereby waives grace, notice, demand or presentment for payment of this Note, dishonor, notice of dishonor,
notice of default or nonpayment, protest, notice of protest, suit, notice of intention to accelerate, notice of acceleration, diligence
or any notice of or defense on account of the extension of time of payments or change in the method of payments, and consents to
any and all renewals and extensions in the time of payment hereof, and the release of any party primarily or secondarily liable
hereon.


 


It is expressly provided
and stipulated that notwithstanding any provision of this Note, in no event shall the aggregate of all interest paid by Debtor
to Payee hereunder ever exceed the maximum non-usurious rate of interest which may lawfully be charged Debtor under the laws of
the State of Texas or United States Federal Government, as applicable, on the principal balance of this Note remaining unpaid.
It is expressly stipulated and agreed by Debtor that it is the intent of Payee and Debtor in the execution and delivery of this
Note to contract in furtherance of such laws, and that none of the terms of this Note shall ever be construed to create a contract
to pay for the use, forbearance or detention of money, at any interest rate in excess of the maximum non-usurious rate of interest
permitted to be charged Debtor under the laws of the State of Texas or United States Federal Government, as applicable. The provisions
of this paragraph shall govern over all other provisions of this Note should any such provisions be in apparent conflict herewith.


 


Specifically, and without
limiting the generality of the foregoing paragraph, it is expressly provided that:


 


(i)       In the
event of prepayment of the principal of this Note, in whole or in part, or the payment of the principal of this Note prior to
the Maturity Date, whether resulting from acceleration of the maturity of this Note or otherwise, if the aggregate amount of
interest accruing hereon prior to such payment plus the amount of any interest accruing after maturity and plus any other
amount paid or accrued in connection with the indebtedness evidenced hereby which by law are deemed interest on the
indebtedness evidenced by the Note and which aggregate amounts paid or accrued (if calculated in accordance with the
provisions of this Note other than this paragraph) would exceed the
maximum non-usurious rate of interest which could lawfully be charged as above mentioned on the unpaid principal balance of the
indebtedness evidenced by this Note from time to time advanced (less any discount) and remaining unpaid from the date advanced
to the date of final payment thereof, then in such event the amount of such excess shall be credited, as of the date paid, toward
the payment of the principal of this Note so as to reduce the amount of the final payment of principal due on this Note, or if
the principal amount hereof has been paid in full, refunded to Debtor.








 






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(ii)       If
under any circumstances the aggregate amounts paid on the indebtedness evidenced by this Note prior to and incident to the
final payment hereof include amounts which by law are deemed interest and which would exceed the maximum non-usurious rate of
interest which could lawfully have been charged or collected on this Note, as above mentioned, Debtor stipulates that (a) any
non-principal payment shall be characterized as an expense, fee, or premium rather than as interest and any excess shall be
credited hereon by the holder hereof (or, if this Note shall have been paid in full, refunded to Debtor); and (b)
determination of the rate of interest for determining whether the indebtedness evidenced hereby is usurious shall be made by
amortizing, prorating, allocating, and spreading, in equal parts during the full stated term hereof, all interest at any time
contracted for, charged, or received from Debtor in connection with such indebtedness, and any excess shall be canceled,
credited, or refunded as set forth in (a) herein.


 


Any check, draft, money
order, or other instrument given in payment of all or any portion of this Note may be accepted by Payee and handled in collection
in the customary manner, but the same shall not constitute payment hereunder or diminish any rights of Payee except to the extent
that actual cash proceeds of such instruments are unconditionally received by Payee. If at any time any payment of the principal
of or interest on this Note is rescinded or must be restored or returned upon the insolvency, bankruptcy or reorganization of Debtor
or otherwise, the obligation under this Note with respect to that payment shall be reinstated as though the payment had been due
but not made at that time.


 


Debtor agrees that
this Note shall be freely assignable to any assignee of Payee, subject to compliance with applicable securities laws.


 


Debtor represents and
warrants that the extension of credit represented by this Note is for business, commercial, investment, or other similar purposes
and not primarily for personal, family, household or agricultural use.


 


This Note has been
executed and delivered and shall be construed in accordance with and governed by the laws of the State of Texas and of the United
States of America applicable in Texas. Venue for any litigation between Debtor and Payee with respect to this Note shall be Bexar
County, Texas. Debtor and Payee hereby irrevocably submit to personal jurisdiction in Texas and venue in Bexar County for purposes
of such litigation.


 


THIS NOTE REPRESENTS
THE FINAL AGREEMENT BETWEEN DEBTOR AND PAYEE AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT
ORAL AGREEMENTS BETWEEN DEBTOR AND PAYEE.


 






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THERE ARE NO UNWRITTEN
ORAL AGREEMENTS BETWEEN DEBTOR AND PAYEE.


 


	 	DIGERATI TECHNOLOGIES, INC.,
	 	a Nevada corporation
	 	 	 
	 	By:	/s/ Arthur L. Smith
	 	Name:	Arthur L. Smith
	 	Title:	CEO


 


 


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